C.HALL BUILDING AND MAINTENANCE LTD

Executive Summary

C.HALL BUILDING AND MAINTENANCE LTD is experiencing significant financial distress, highlighted by persistent negative equity and worsening liquidity. Immediate actions focused on cash flow improvement, liability restructuring, and capital injection are critical to stabilize and restore financial health. Without intervention, the company risks insolvency despite being active and operational.

C.HALL BUILDING AND MAINTENANCE LTD - Analysis Report

Company Number: 13546269

Analysis Date: 2025-07-20 14:29 UTC

Financial Health Assessment: C.HALL BUILDING AND MAINTENANCE LTD

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1. Financial Health Score: D

Explanation:
The company exhibits significant financial distress indicators, including persistent negative net assets and worsening working capital deficits over the last two years. This score reflects a concerning financial condition that requires urgent attention to improve liquidity and solvency.

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2. Key Vital Signs

Metric	2023 (£)	2022 (£)	Interpretation
Fixed Assets	3,750	8,996	Declining investment in long-term assets; may indicate asset sales or underinvestment.
Current Assets	2,062	197	Small increase but still very low; signals limited liquid resources.
Current Liabilities	37,685	26,088	Substantial increase; high short-term obligations pose liquidity risk.
Net Current Assets	-35,623	-25,891	Negative working capital (“symptom of distress”) showing inability to cover short-term debts.
Total Assets Less CL	-31,873	-16,895	Negative figure indicates liabilities exceed assets; a critical solvency red flag.
Net Assets (Shareholders’ Funds)	-35,423	-18,780	Persistently negative equity (“financial illness”) weakens capital base and investor confidence.

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3. Diagnosis

C.HALL BUILDING AND MAINTENANCE LTD presents symptoms of financial distress that have worsened over its two years of operation. The company’s negative net assets and working capital deficits indicate it is currently insolvent on a balance sheet basis. The growth in current liabilities outpaces current assets, suggesting increasing pressure on liquidity and cash flow – akin to a patient whose vital signs (cash flow and liquidity) are dangerously low, risking “organ failure” (business collapse).

The company’s micro entity status means it benefits from simplified reporting, but the underlying financial health is weak. The single director/operator structure (owner holds 75-100% shares) indicates concentrated control but also high personal financial exposure.

No audit or external review was conducted, which limits assurance but is typical for a micro company. The fixed asset decline may suggest selling or underinvestment, possibly to manage cash flow shortages.

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4. Recommendations

To improve financial wellness, the company should consider the following steps as part of a recovery plan:

1. Improve Cash Flow Management

   • Accelerate debtor collections and negotiate longer payment terms with suppliers.
   • Consider short-term financing (overdraft or invoice factoring) to stabilize liquidity.

2. Restructure Liabilities

   • Engage creditors to restructure or extend payment terms to relieve immediate cash pressure.
   • Explore government grants or support schemes for small construction businesses.

3. Increase Capital Injection

   • The sole shareholder/director should consider injecting additional equity to restore positive net assets, improving solvency and creditworthiness.

4. Cost Control Measures

   • Review expenses carefully to reduce overheads without impacting core operations.
   • Evaluate asset utilization and consider asset sales only if proceeds exceed book value or improve cash flow significantly.

5. Financial Monitoring and Reporting

   • Implement monthly cash flow forecasts and financial reviews to detect early symptoms of distress.
   • Consider voluntary external financial advice for specialist restructuring guidance.

6. Business Development Focus

   • Pursue profitable contracts and diversify clients to stabilize revenue streams, aiding sustainable recovery.

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Medical Analogy Summary

The company shows clear “symptoms of financial distress”: negative equity is like a failing heart unable to pump capital, and negative working capital resembles dangerously low blood pressure threatening business survival. Without prompt intervention—akin to emergency treatment—the prognosis could worsen, potentially leading to insolvency.

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